As reported by Reuters on April 27, Fuji Media Holdings, which owns entertainment company Pony Canyon, has announced a downward revision of its consolidated earnings forecast for the fiscal year ended March 2026. Due to several factors, the company expects net income to fall sharply, down 71.1% from its previous forecast.
The main reason for the downward revision is losses recorded at Pony Canyon as part of structural reforms in its anime-related business. Pony Canyon is best known for its involvement in the production and distribution of anime like the Attack on Titan series and numerous Kyoto Animation titles, and more recently, the feature-length animated film 100 meters. According to the full report from Fuji Media Holdings, Pony Canyon booked an impairment loss of approximately 6.3 billion yen (about $39.5 million USD) related to anime production costs, including major revisions to its anime investment plans and reforms in cost structure.
According to RTB Square, the decision to recognize an impairment loss comes amidst Pony Canyon’s difficult financial situation as of late, driven by a decline in revenue due to a lack of hit titles and an increase in amortization of investments related to the anime business. Going forward, Pony Canyon plans to restructure its content production system and urgently work to create hits in the animation sector and improve profitability.
